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15y from deciding to redevelop a stripmall to completion, even with a long-term owner & supportive local govts. 5y just to get site control back from leases. That's 15 years of full carrying costs w/ impaired income.
(Shown: Scout on the Circle, Fairfax city, VA)
(Shown: Scout on the Circle, Fairfax city, VA)
400 units, 83K sq ft retail (was 100K sq ft before), $150M total project cost, of which $23.5M was land value. https://www.combined.biz/properties/scout-on-the-circle/
contracts (leases, operating agreements) are a HIGHLY underrated barrier to redevelopment.
this owner is a core fund. doing opportunistic dev't was way outside their comfort zone. it means giving up lots of money in the short run, which they could do bc they:
this owner is a core fund. doing opportunistic dev't was way outside their comfort zone. it means giving up lots of money in the short run, which they could do bc they:
- owned it forever (w no debt)
- could buy out some key leases early
- could front all predev expenses out of pocket
- set a strategic direction to diversify away from retail
- could buy out some key leases early
- could front all predev expenses out of pocket
- set a strategic direction to diversify away from retail
